Is Diversification Living Up to The Promise?
Dr. Sushil Wadhwani CBE, Chief Investment Officer of PGIM Wadhwani, discusses how economic uncertainty is creating opportunities in liquid alternatives.
Amid extensive efforts to tame inflation, the ultimate economic cost of restrictive monetary policy has yet to become apparent against an uneven global backdrop. Still, investors began the year assuming a positive outcome was imminent based on signs of progress in the inflation fight, positioning markets for heightened volatility as new data points test those early assumptions. At the same time, the war in Ukraine remains a geopolitical wildcard with disruptive potential that is as difficult to gauge as its resolution is to predict.
PGIM Wadhwani Keynes Systematic Absolute Return Fund is a liquid alternative solution that employs a systematic global macro approach designed to reduce risk, preserve capital, and provide returns with low correlations to traditional markets. The Fund can take both long and short positions in stocks, bonds and currencies. Its agile, research-based investment strategy earned top honours in the ‘UCITS – Macro’ category at the HFM European Performance Awards 2022.
Past performance, including simulated performance, is not a reliable indicator of future performance. Source: Morningstar as of 30 September 2023. Please see bottom of the page for overall Morningstar disclosure.
Directional trading capabilities and a global investment universe consisting of equities, fixed income and currencies enable opportunistic investing across key assets with the flexibility to adjust net exposure broadly.
A comprehensive focus on risk management emphasizes downside protection, volatility targeting, security-specific risk control, and continuous correlation monitoring to manage contagion risk.
Designed to deliver low volatility and low beta to traditional markets via access to uncorrelated return sources diversified by geography, asset class, investment style and timeframe.
Drawing on decades of investment, public-policy and academic experience, the investment team performs continuous and exhaustive research to ensure its models reflect high-conviction, leading-edge insights.
PGIM Wadhwani Keynes Systematic Absolute Return Fund– Morningstar measures risk-adjusted returns. The overall rating is a weighted average based on the Fund’s 3-, 5-, and 10-year star rating. Source: Morningstar. Morningstar Stars were calculated using extended performance returns, which links preinception returns to a U.S. based Fund, managed using the same investment approach, with a longer track record which begins 24 Jul 2015. Fees were adjusted inline with the Fund’s current expenses. Ratings 3yr 25/135, 5yr 7/91, 10yr N/A.
Award source: With Intelligence. PGIM Wadhwani was awarded ‘UCITS – Macro’ winner at the HFM European Fund Performance Awards 2022 for its Systematic Absolute Return Strategy on 29 September 2022, based on data up to 31 August 2022.
Awards and ratings are subject to change without notice and do not constitute investment advice or an offer to buy any security.
The Morningstar Rating for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustments for sales loads. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year(if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
©2024 Morningstar, Inc. All rights reserved. The information contained herein (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Past performance is not a guarantee or a reliable indicator of future results.
For compliance use only 3328035